Microsoft Corporation Presents at Morgan Stanley Technology, Media and Telecom Conference, Mar-03-2014 08:00 AM - NasdaqGS:MSFT

NasdaqGS:MSFT

**- Industry Context: Lu Qi highlights four major trends shaping the tech industry:

• Computing moving to the cloud

• Computing extending beyond PCs to modern, cloud-connected devices

• Social communications evolving beyond email

• Big data and machine learning driving innovation**

• Microsoft's Core Mission: Microsoft is a "do-more" company, enabling individuals and businesses to accomplish more. The company aims to leverage these trends to enhance its core mission.

• Strategic Importance of Mobile Devices: Microsoft needs to thrive in a "cloud-first, mobile-first" world. Vertical integration, including devices, operating systems, and applications, is crucial for driving innovation and capturing economic value.

• New Leadership: Lu Qi expresses high confidence in Satya Nadella, the new CEO, emphasizing his ability to drive clarity, alignment, and a faster pace of innovation within the company.

• Cloud Services and Innovation: Moving to the cloud allows for faster product updates and better responsiveness to customer needs. Microsoft is developing high-value enterprise graphs, such as the Office Graph, to enhance user experiences and drive innovation.

• Office 365 and Release Cadence: Microsoft focuses on delivering great customer experiences and ensuring economic viability when deciding on platform releases. The company is working on touch-first versions of core Office applications for various devices.

• Lync and Skype Integration: Lync is growing rapidly and is expected to interoperate with Skype, enhancing rich audio/video communication for both work and personal use. There is significant room for improving the meeting experience and delivering more value.

• Bing's Strategic Importance: Bing is crucial for organizing digital information and enhancing user experiences across devices and services. It is a key component in Microsoft's strategy to capture economic value and drive innovation. The company is committed to making Bing economically viable and continues to gain market share.

• Future Focus: Under Satya Nadella's leadership, Microsoft will maintain its focus on delivering high-value scenarios and driving faster innovation, with a strong emphasis on alignment and velocity.